A prime parcel of government-owned land in Hobart’s northern suburbs is to be sold off to private developers and turned into a multi-use retail precinct, family resort and hotel.
The “surplus” land at Wilkinsons Point in Glenorchy, just 15 minutes from the Hobart CBD, will be acquired by JackJumpers soon-to-be former owner Larry Kestelman’s LK Group.
Premier Jeremy Rockliff said the $500 million project will be one of the most significant private investments ever made in Tasmania.
He did not say how much of the 15-hectare site would be sold or how much Kestelman will pay for it, only that the value was still to be determined by the Valuer-General.
“It’s clear that investors can see the potential here in Tasmania and an investment of this size is a huge vote of confidence in the Tasmanian economy and the northern suburbs,” Rockliff said.
“By partnering with private enterprise, we are excited for what will be more than $1 billion in economic activity that will follow.”
Kestelman unveiled plans for the waterfront site in 2019, which then included a 12-storey, 250-room hotel, a multi-purpose community centre, food and beverage facilities, sports-related retail, public spaces and trails.
The billionaire has previously spoken of his intention to use the land to recreate a precinct similar to Melbourne’s Southbank.
As part of the development agreement, the state government will fund critical “common-use infrastructure”, including a new Wilkinsons Point ferry terminal, services and associated parking facilities.
Rockliff said the new “world-class” precinct, located near MONA and the planned world’s largest chocolate fountain experience at Cadbury, will turn the northern suburbs into a “tourist destination”.
“Not only will new jobs be created during the construction period, but there will also be hundreds of ongoing jobs as a result of this transformational project,” he said.
“This is a massive win for our tradies and local suppliers, with thousands of jobs and years of work set to be activated across three exciting stages of development on the site.”
Kestelman says it will be a “massive development”, but not one he anticipates to be easy.
I feel half Tasmanian now … Every time I’ve come here and looked at Wilkinson’s Point, coming from the mainland, I just scratch my head and go, how in the world has this amazing opportunity not been activated on,” he said this morning.
And it was an interesting challenge to come up with what is the vision for this precinct. The more we looked at it, the more we feel it needs to be activated as a core family-style hotel.”
“I really believe in the vision for this development. We’re going to try to bring some new big-box retailers to the precinct. So in my mind, it’s a massive risk on our part, but I believe in Tasmania.”
Kestelman says he has heard the calls from Tasmanians calling for Aldi to set up shop in the state, which he hopes to be able to facilitate at Wilkinson’s Point.
“As soon as I’m walking out of here, I’m picking up the phone and calling ALDI and seeing how we can get them here,” he said.
“I’ve heard it loud and clear from the Tasmanian people. So we’ll see if they want us, [it] sounds like we want them, so we’ll try to facilitate.”
Glenorchy Mayor Sue Hickey said she is the “happiest Mayor in Australia today.
“This is a significant investment in our city … It will bring lots of jobs, lots of activity, and give us some of the hospitality infrastructure that this city needs.”
“Just to see this magnificent point developed and still retain the public amenity is a really important game-changer.”
